Do idiots like Bill Nighy have any idea what damage a 0.05% tax on every foreign exchange transactions would have to the global economy?
The EUR/USD exchange rate trade 2 pips wide (so 1.3940/1.3942 say) or 0.014% wide. A 0.05% tax is going to mean the bid/offer would have to widen to 16 pips (1.3932/1.3948). It would widen the bid/offer by 8 times!
Liquidity in FX market would fall dramatically and in reality bid/offer would widen even more than this. Who would pay the additional bid/offer? Every business doing import/export business. How would they pay for that additional cost?
Robin Hood's stated aims are to reduce poverty in the UK and developing countries. Putting taxes on FX transactions would seriously damage things like the global food trade. Are they naive enough to think that banks or corporations are just going to pass the charges on?
Businesses will raise prices in the country they import to. This raises the cost of living, making everybody poorer.
Businesses will reduce the price they pay for good in the exporting country. What would that do for exporters in emerging economies? Make them poorer.
Well done Bill ... you've just made everyone even poorer. But of course when you're a multi-millionaire actor luvvy why should you give a shit!